Autumn Budget: APD
Boost for domestic flights with 50% cut in APD
Boost: domestic flights (pic: Terry Murden)
The UK government is to cut Air Passenger Duty (APD) for domestic flights from April 2023 but long-haul taxes are to rise.
The plans, unveiled by Chancellor Rishi Sunak in his Autumn Budget, will see a 50% reduction in APD for flights between airports in England, Scotland, Wales and Northern Ireland in 2023/24.
Under the new arrangement, passengers will pay £7.50 for each flight rather than the current £13.
However, a new rate of £91 for economy seats will be introduced for ultra-long-haul flights of 5,500 miles or more, which Mr Sunak said will help Westminster achieve its carbon emissions reduction goals because “most emissions come from international rather than domestic aviation”.
The current rate of APD for long-haul destinations (more than 2,000 miles) is £82 in economy for 2021/22. From April 2022 this will increase to £84.
Mr Sunak said less than 5% of passengers will end up paying more APD but that “those who fly furthest will pay the most”.
He added: “Right now people pay more for return flights between the four nations of the United Kingdom than they do when flying home from abroad.
“This will help cut the costs of living, with nine million passengers seeing their duty cut by half. It will bring people together across the United Kingdom.”